Why are changes in inventories included as part of investment spending? Suppose inventories declined by $1 billion

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Why are changes in inventories included as part of investment spending? Suppose inventories declined by $1 billion during 2006. How would this affect the size of gross private domestic investment and gross domestic product in 2006?

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Economics

ISBN: 9780073336947

17th Edition

Authors: Campbell McConnell , Stanley Brue

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